Corporate Income Tax
Companies in Thailand are generally taxed at 20%. Branch corporate income tax rate is also 20%. However, corporate tax rates may vary as follows.
- Small companies with a net profit between 300,000-3,000,000 Baht are taxed at 15%
- Small companies with a net profit over 3,000,000 Baht are taxed at 20%
- Companies listed in the Stock Exchange of Thailand are taxed at 20%
- Companies newly listed in the Stock Exchange of Thailand or the Market for Alternative Investment are taxed at 20%
- Foreign companies engaging in international transportation are taxed at 3%
- Foreign companies disposing profit out of Thailand are taxed at 10%
All individuals and corporate entities liable to pay tax must file annual tax returns.
Thai companies and foreign entities carrying on business in Thailand are required to file their tax returns (Form CIT 50) within 150 days from the closing date of their accounting periods. Tax payment must be made together with the tax returns.
In addition to the annual tax payment, any corporate entity subject to income tax on net profits is also required to make tax prepayment (Form CIT 51). A company is obliged to estimate its annual net profit as well as its tax liability and pay half of the estimated tax amount within two months after the end of the first six months of its accounting period
Income Tax Rate
- 0-150,000: exempt
- 150,001-300,000: 5
- 300,001-500,000: 10
- 500,001-750,000: 15
- 750,000-1,000,000: 20
- 1,000,001-2,000,000: 25
- 2,000,001-4,000,000: 30
- Over 4,000,001: 35
A resident of Thailand is liable to pay taxes on income from all sources earned in Thailand as well as a on a portion of the income from foreign sources that is brought into Thailand. However, a non-resident of Thailand is only subject to income tax on sources of income earned in Thailand.
Assessable income includes the following.
- Employment income attributable to personal services
- Employment income attributable to jobs, positions or services
- Income from goodwill, copyright, franchise, and annuity
- Income from letting property, sales installments and hire-purchase agreements
- Income from liberal professions
- Income from construction contracts
- Income from business, commerce, agriculture, industry, and transport
Current Value Added Tax (VAT) rate is 7%.
Business entities with an annual turnover exceeding 1.8 million Baht per annum is legally obligated to pay VAT.
Certain income types paid to companies can be subject to withholding tax at the point of source.
Such withholding tax rates on pre-specified categories of income are as follows.
- Dividends 10%
- Interest 1%
- Royalties 3%
- Advertising fees 2%
Service and professional fees
If paid to a Thai or foreign company with a permanent branch in Thailand 3%
If paid to a foreign company not having a Permanent branch in Thailand 5%
Petroleum Income tax
An indirect tax paid on an annual basis on net profit earned while carrying out the business of petroleum exploration and production.
- Act B.E. 2514 (status 1): 50%
- Act B.E. 2522 (status 2): 35%
- Act B.E. 2532 (status 3): 50%
Disposal of profits: 23.08%
Withholding tax rates
(For transfer of petroleum)
- Property or rights: 50%
- Payment of interest: 50%
- Payment of dividend: 23.08%
- Payment of interest: 15%
Time to prepare and Pay Taxes
Employers Social Security and statutory contributions
Employers are obligated to contribute 5% of employee salary upto a maximum of 750 Baht per month. An employer is obligated to contribute between 2%-15% of the employee’s monthly wage to the Social Security Fund (SSF). This contribution should match the contribution made by the employee.
Employees Social Security and statutory contributions
Employees are obligated to contribute 5% of employee salary upto a maximum of 750 Baht per month. An employee is obligated to contribute between 2%-15% of the employee’s monthly wage to the Social Security Fund (SSF).